Cheap Land for Sale Remain While Prices of Homes Improve- By: John Cutts
Although parcels of cheap land for sale continue to increase in some areas of Tennessee, the number of cheap houses has somewhat declined in some markets as prices jumped higher during the fourth quarter of last year. Single family dwellings, in particular, posted price improvements during the three-month period.
Distressed properties in Nashville and foreclosure homes in various areas of the state have dragged down the prices of dwellings for years. However, data for the October-December 2010 period showed that certain local markets posted improvements in housing prices. In Chattanooga, the median selling prices of single family dwellings improved in the last quarter of 2010.
Despite the presence of foreclosed and distressed properties in Tennessee, median rate in Chattanooga increased by 3.2% during the fourth quarter of 2010. The median selling rate for single family residences during the October-December quarter was pegged at $124,600. Although this is still below the median national selling rate of $170,600, Chattanooga beat the 0.2% yearly increase recorded by the national housing market.
In addition, the increase effectively reversed declines in housing prices that have been running for three years. Local analysts stated that housing unit prices are starting to stabilize in Chattanooga and in most areas of Tennessee, although cheap land for sale and low sales figures remain major concerns for the real estate market. Realtors are hoping that the rise in prices will continue for the rest of 2011.
The selling price increase came despite a decline in housing unit sales. Sales of residential properties, including fixer upper homes, dropped in Chattanooga for the fourth quarter. A total of 1,258 residential properties were sold during the October-December period, representing a drop of 18% when compared with the 2009 fourth quarter. In terms of the length of time that Chattanooga houses spend in the market before they get sold, realtors reported that the average was 136 days during the 2010 last quarter.
Despite the presence of cheap land for sale and foreclosed residences, local realtors are hoping that the real estate market will continue to improve in 2011. Most of them believe that a gradual increase in housing prices will greatly help the market recover from the foreclosure crisis.
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John Cutts has been educated in the finer points of the foreclosure market over 5 years.